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Updates


THE TIME IS NOW: IFA CALLS ON CONGRESS TO PROTECT THE FUTURE OF FRANCHISE BUSINESS OWNERS

WASHINGTON, Dec. 2—On behalf of the nation’s 780,000 franchise business establishments and the 8.9 million workers they employ, International Franchise Association today expressed support for a provision included in the FY 2016 Labor, Health and Human Services, Education and Related Agencies Appropriations Bill. The policy provision would stop the National Labor Relations Board (NLRB) from implementing radical change to the National Labor Relations Act (NLRA) joint-employer standard.

“November brought a month of strong growth in the franchise industry, according to the recent ADP National Franchise Report U.S. private sector jobs in franchising increased by 25,600. Yet an expanded joint employer standard looms large over the expansion plans of franchises, as franchise small business owners hesitate to expand businesses that they may not fully control in the eyes of the NLRB,” stated IFA’s President & CEO Robert Cresanti in a letter submitted today to all Members of Congress.

Cresanti added that “congress now has the opportunity to preserve this critical job creating industry and provide certainty for all locally-owned franchise businesses by incorporating this provision into the 2016 omnibus spending package.”

On August 27, the NLRB’s decision in its Browning-Ferris Industries case dramatically expanded the agency’s joint employer standard. The standard had previously stated that only businesses with direct and immediate control over the terms and conditions of employment of another entity’s workers could be found to be joint employers. However, the Board’s expansion of the joint employer definition to include companies without actual and direct control creates debilitating uncertainty for franchise brand companies and individual franchise small business owners alike.

As the Board further considers the implications for its new ruling on the franchise business model, IFA is urging Congress to pass a spending bill that stands up for local franchise business owners everywhere and allows their doors to stay open next year.

To view the full letter, please click here.

Date: 2015-12-04

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